Private Wealth Updates - Fall 2017

IRS Announces 2018 Increases to Annual Exclusion, Gift and Estate Tax Exemptions

The gift tax annual exclusion will increase from $14,000 to $15,000 next year, allowing donors to give up to $15,000 ($30,000 combined for married couples) per donee each year without incurring gift tax or using lifetime gift and estate tax exemption. The lifetime gift and estate tax exemption will increase from $5.49 million in 2017 to $5.60 million ($11.20 million combined for married couples) in 2018. The generation-skipping transfer tax exemption will also rise to $5.60 million. The annual exclusion for gifts to non–U.S.-citizen spouses will increase to $152,000 next year, up from the current $149,000. The exemption and annual exclusion increases will be the largest since 2013.

Treasury Withdraws Proposed Regulations Restricting Valuation Discounts

The Treasury Department has withdrawn controversial proposed Section 2704 regulations that were published last year. The proposed regulations would have limited common valuation discounts on family-controlled entities for estate and gift tax purposes.

Please contact a member of Arnall Golden Gregory’s Private Wealth Group about how the changes could affect your estate plan.